OPTIMIZE YOUR AI TECH IMPORTS
Ship Your US-Origin GPUS To Tier 2 Countries
- Streamline US GPU shipments before the heavy export controls apply,
- Maximize your profitability and avoid sunk costs from VAT/GST,
- Receive end-to-end supply chain support for seamless customs clearance, expert freight, compliance, flexibility and visibility, and
- Pass import risks onto us and insure 110% of your shipment’s replacement value.
Why Are US-Made GPUs At Risk Of Export Controls?
One of the final actions of the Biden administration was to release the “Export Control Framework for Artificial Intelligence (AI) Diffusion.” The framework aims to prevent countries of concern from training AI models, prevent non-trusted entities from accessing advanced models, and protect the data of advanced models through enhanced physical security.
The framework threatens to place tight country-specific caps on the amount and computational power of GPU imports. With immediate backlash from key US semiconductor exporters like Nvidia and Oracle, the framework has not yet been enacted. However, considering that part of the Trump administration’s America First Trade Policy involves fortifying loopholes in export controls to prevent dual-use goods and technologies from reaching America’s strategic rivals, it is likely under review and may take effect from mid-May 2025.
These potential US export controls are expected to complicate global GPU deployments and affect profit margins for chipmakers, importers, and exporters alike.
Who Is At Risk?
Tier 1 (T1)
Trusted Allies & Key Players
18 countries, covering trusted allies and key semiconductor regions, would likely be exempt from US export controls.
This means that the following countries will likely maintain access to advanced US-made GPUs Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan, and the UK.
Tier 3 (T3)
Geopolitical Adversaries
Group D5 countries and Macau, which are subject to arms embargoes and existing export controls, would be strictly forbidden from importing and accessing US-origin GPUs.
Tier 3 will likely include Afghanistan, Belarus, Burma, Cambodia, Central African Republic, China (including Macau), Cuba, The Democratic Republic of Congo, Eritrea, Haiti, Iran, Iraq, Lebanon, Libya, North Korea, Nicaragua, Russia, Somalia, South Sudan, Sudan, Syria, Venezuela, and Zimbabwe.
Tier 2 (T2)
Countries with Controlled Access
Up to 150 countries between Tier 1 and Tier 3 would likely be limited on the US-origin GPUs they can import, and most shipments would require US authorization or export licenses.
Tier 2 consists of a long list of countries. It’s unclear why the framework excluded certain EU members like Greece from Tier 1 and placed them in the gray zone of Tier 2. Some other likely T2 countries include Argentina, Brazil, Iceland, India, Israel, Mexico, Thailand, and the United Arab Emirates.
How Could AI Diffusion Export Controls Impact Your GPU Shipments?
Global trade compliance will be more critical than ever for US semiconductor importers and buyers:
- Importers will need to understand ECCN classifications to assess whether their GPUs will be affected.
- Rules of Origin will be vital in determining whether GPU chips consist of US-origin components, and
- New licenses may be required from the Bureau of Industry and Security (BIS) to qualify for exemptions.
The stringent caps will likely make it difficult for the US government to track and oversee compliance. Supportive measures for the controls, like “Know Your Customer” guidelines, may be enforced to encourage shippers to investigate the end-user of their goods. Additionally, importers and exporters of US-made GPUs will need to implement compliance programs and efficient measures to ensure compliant shipments and avoid penalties, delays, and financial losses.
As TecEx is an experienced importer and exporter of advanced AI tech and GPUs, we have the expertise to expedite your GPU shipments to Tier 2 countries before these restrictive controls are implemented.
Further Reading On Shipping AI Tech
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